Responsible mining in Latin America

and the Caribbean?

Regional Study 2020

Assessing how mining companies address public interest issues

English version

Acknowledgements

The Responsible Mining Foundation would like to thank the funders of the RMI Report 2020: Swiss State Secretariat for Economic Affairs, The Netherlands Ministry of Foreign Affairs, and the Triodos Foundation.

Cover photo: © Ottocarotto, 2009 (Peru).

Regional Study 2020

Responsible Mining in Latin America and the Caribbean?

Assessing how mining companies address public interest issues

2 RMI Report 2020 │ Latin America and the Caribbean

Introduction

The region of Latin America and the Caribbean includes important reserves of metals and

minerals and mining is a key contributor to the economies of countries such as Chile, Peru,

Bolivia and Mexico.1 The sector accounts for approximately 10% of the GDP of Chile and

Peru, for example,2 and contributes over 50% of the exports of both countries.3 However, the

macro-economic benefits need to be viewed alongside the significant social and

environmental impacts generated by the industry. In this region, the real and potential

negative externalities are substantial. The loss of life and long-term environmental damage

caused by two recent tailings dam failures in Brazil are sobering reminders of the huge risks

faced by local communities, workers and ecosystems, while water pollution and water stress,

unsafe working conditions and violent attacks on human rights defenders are among the

realities in many producing countries in the region. It is encouraging to see that a number of

LAC countries have produced National Action Plans (NAPs) to implement the UN Guiding

Principles on Business and Human Rights, or have included a Business and Human Rights

chapter in their Human Rights NAPs. These state-level actions set important frameworks for

corporate behaviour. However, it is only through systematic action by mining companies to

improve the management of economic, environmental, social and governance (EESG)

issues, active engagement with all stakeholders and the disclosure of locally-relevant data

on their EESG performance that companies will be able to limit risk, build trust, achieve

legitimacy and ensure sustainable operations for the future.

This regional study examines how the results of recent research by the Responsible Mining

Foundation (RMF) reflect current EESG practices by large-scale mining companies

operating in the region and point to priority issues requiring urgent attention if some of the

worst adverse impacts of mining are to be avoided. The research in question – the

RMI Report 2020 – is the second edition of RMF’s evidence-based assessment of mining

company policies and practices on EESG issues. Centro Vincular, part of the Pontifical

Catholic University of Valparaiso, Chile, has partnered with RMF to analyse the data and the

results of the RMI Report 2020 from a Latin American and Caribbean (LAC) perspective.

The study looks first at some findings related to the 20 mining companies included in the

RMI Report 2020 that have mining operations in the LAC region, examining how their

corporate-level systems or practices are often not translated into equivalent actions at the

mine-site level. The focus then shifts to the six LAC companies included in the RMI Report

2020 (i.e. those companies registered in the LAC region or with operations solely in the LAC

region) and how they are performing on some issues of particular pertinence to Latin

America and the Caribbean. Finally, drawing on good models and leading practices seen in

the region, some ways forward are suggested for companies and governments to advance

responsible mining in this key mining region of the world where the industry has huge

potential to contribute to sustainable development yet can also pose a threat to the lives and

livelihoods of communities and workers and the environments in producing countries.

Gaps in how corporate-level systems translate into site-level action

Twenty of the 38 companies included in the RMI Report 2020 have operations in the LAC

region (see Figure 1). The 20 companies operate a total of 104 mine sites in the region. The

RMI Report 2020 │ Latin America and the Caribbean 3

RMI Report 2020 assessment focuses primarily on corporate-level policies and practices

and covers the entire operations portfolio of companies. In addition, a mine-site-level

assessment evaluates a total of 180 mine sites, including 49 in Latin America and the

Caribbean, and reveals how corporate commitments and systems are being implemented on

the ground, at mining operations that may be geographically and culturally very far removed

from corporate head offices.

Figure 1. Regional geographic footprint of the 20 companies included in RMI 2020 Report that

have operations in the LAC region

Home countries, where companies are headquartered

Producing countries, where companies have mining operations

Mine sites selected for mine-site-level assessment

Other operational mine sites

Closed or suspended mine sites (known)

Companies assessed in

RMI Report 2020

with operations in LAC

Anglo American

AngloGold Ashanti

Antofagasta

ArcelorMittal

Barrick Gold Corp

BHP

Buenaventura

CODELCO

First Quantum Minerals

Freeport-McMoRan

Glencore

Gold Fields

Grupo México

Industrias Peñoles

MMG

Newmont

Rio Tinto

RUSAL

Teck

Vale

4 RMI Report 2020 │ Latin America and the Caribbean

The results reveal a striking mismatch between corporate-level commitments and systems

on the one hand and mine-site-level action on the other, on issues of primary importance to

the region. This section presents some illustrative examples of how many companies are

unable to show consistent implementation of responsible and transparent environmental

practices across their operations, despite having environmental stewardship policy

commitments in place. The 20 assessed companies with mine sites in the LAC region score

an average of 68% on having made formal commitments to manage their environmental

impacts in a systematic manner that prioritises the prevention of negative impacts and

minimises unavoidable impacts. However, on issues such as water consumption, tailings

management and emergency preparedness, these commitments often fail to translate into

site-level action and transparency.

It should be noted that as an evidence-based assessment, the RMI Report 2020 results

reflect what companies can demonstrate they are doing. In some cases low scores may

result from companies not making publicly available the relevant information. And

assessment of public reporting by companies measures the existence and extent of this

reporting, not the substance of the reporting; for example an indicator on public disclosure of

water quality data assesses whether the data is disclosed in a meaningful way, not whether

the data shows responsible management of water quality.

Water consumption

Mining in Latin America and the Caribbean often takes place in areas of water scarcity and

water stress, including in parts of Peru, Chile and Mexico.4 Conflicts over water use by

mining companies has led to major disruptions to operations in the region.5 Companies have

a direct interest and responsibility to track and report on their water consumption levels and

to engage with local stakeholders on how they are taking measures to reduce their water

consumption.

On this issue, the assessment results show weak and inconsistent action, particularly at the

mine-site level (see Figure 2). The 20 companies operating in the LAC region score an

average of 30% on corporate-level actions to track, report and act to improve their

management of water consumption, and their assessed mine-sites achieve only 21% on

average on actions to disclose the amount of water they are consuming and discuss water

management issues with affected communities. In fact, one-third of the 49 LAC mine sites

included in the mine-site assessment score zero for this indicator. It is interesting to note that

the company scoring highest for the corporate-level indicator (Anglo American) only

achieves a score of 22% for the site-level indicator, with two of its three sites in Latin

America scoring zero. This is one of many examples of corporate-level tracking data not

being available in a disaggregated format for each site, although the disclosure of

aggregated figures would suggest that water consumption levels are being tracked across all

the company’s operations. The results also reflect a lack of evidence of local-level

stakeholder engagement on this issue of strong public interest and of key importance to

companies in reducing the potential for social conflict and disruption to operations.

RMI Report 2020 │ Latin America and the Caribbean 5

Figure 2. Extract of RMI Report 2020 results on water quantity

Tailings management

Tailings management is undoubtedly one of the most critical mining-related issues for the

LAC region. The trauma of the 2019 Brumadinho disaster in Brazil continues to affect the

daily lives of thousands of families and tailings storage facility (TSF) failures or leakages

have become all too commonplace occurrences. Six of the twelve tailings incidents recorded

by World Mine Tailings Failures during 2018-2019 were in LAC countries, including Brazil,

Chile, Mexico and Peru.6 Clearly, mining companies operating in the region need to

demonstrate strong action on tailings management starting with, at the very least, disclosure

of information on the location and safety of their TSF and on what local stakeholders need to

be aware of in case of a TSF failure.

Leading Practice

Incentivising water conservation

→ Vale has linked its sustainability-related Key Performance Indicators (KPIs) to its

variable compensation program that applies to all Vale employees. Efforts to reduce

water usage are among the actions for which indicators have been created (other

indicators relate to for example reductions in energy use and greenhouse gas

emissions and actions to rehabilitate degraded areas). The indicators are weighted

in order to encourage continuous improvement in sustainability performance by each

of the company's operations.

6 RMI Report 2020 │ Latin America and the Caribbean

Figure 3. Extract of RMI Report 2020 results on tailings management

Here again, we see very disappointing results at mine-site level. Companies’ corporate-level

transparency on their TSF is not matched by mine-site disclosure of locally-critical

information, where it matters most (see Figure 3). The 20 companies operating in the LAC

region score an average of 78% on corporate-level disclosure of data on the location and

safety of their TSF. These fairly strong results are largely due to investor pressure, in

particular a disclosure request by the Investor Mining and Tailings Safety Initiative, led by the

Church of England Pension Board and the Swedish Council of Ethics for AP Funds.7

However, many of these companies cannot show that their operations have informed local

people about the exact location of their TSF, the area at risk from a TSF failure, or the

procedures to follow in the event of such a failure. Their assessed mine sites score an

average score of only 22% on these disclosures and worryingly some 17 of the mine sites in

the LAC region score zero for this indicator.8

Emergency preparedness

Over the past decade, high-profile emergencies resulting from mining operations in Latin

America and the Caribbean have included major releases of hazardous chemicals,

explosions and structural failures at mine sites.9 Flooding and subsequent mudslides are

Leading Practice

A national inventory of tailings storage facilities

→ While the Investor Mining Tailings Safety Initiative found little evidence of

producing country governments keeping records of tailings storage facilities (TSF),

Chile is one case where the government has tracked – and made publicly available –

information on the location and basic safety information of TSF in the country. This

information is of direct interest to investors, financiers and governmental authorities,

as well as local stakeholders living in proximity to these tailings storage facilities.

RMI Report 2020 │ Latin America and the Caribbean 7

among other mining-related emergencies seen in the region and these incidents are

expected to increase as climate change impacts become more prominent. Mining companies

can certainly be expected to have plans in place to respond to emergencies, and to involve

local stakeholders in the developing and testing of these plans.

Figure 4. Extract of RMI Report 2020 results on emergency preparedness

The results show that while some companies have corporate-level systems in place to

ensure their operations take at least some of these actions, there is very little evidence of

these systems being implemented systematically. The 20 companies operating in the LAC

region score on average 32% on showing evidence of corporate-level systems for

emergency preparedness plans, whereas the 49 mine sites assessed score only 5% on

demonstrating they have publicly disclosed these plans, informed local communities of

emergency procedures and involved them in testing these procedures. This clearly shows

the incapacity of most companies to demonstrate how their corporate-level management

standards are translated into actions and engagement on the ground, where it matters to

society. A striking example of this corporate/site-level gap is shown by CODELCO, which

achieves the maximum score for the corporate-level indicator, yet all six of its sites in Chile

score zero for the mine-site indicator.

Leading Practice

Designing a robust emergency plan

→ In designing the emergency plan for its Antucoya mine site in northern Chile,

Antofagasta sought to align the plan with the United Nations’ Awareness and

Preparedness for Emergencies at Local Level (APELL) standard. Working in

partnership with other industries, local communities and local government and

emergency services, Antofagasta first diagnosed the existing response capacity and

then carried out training and certification of key institutions and players at local and

regional level, as well as raising awareness and providing information to the

community.

8 RMI Report 2020 │ Latin America and the Caribbean

LAC companies show limited action on key public interest issues

The RMI Report 2020 covers six LAC companies (i.e. companies registered in, or with

operations solely in, the LAC region): Antofagasta, Buenaventura, CODELCO, Grupo

México, Industrias Peñoles and Vale.

The overall performances of these six companies and their ranking positions among all the

38 companies assessed are summarised in Table 1. As is the case with nearly all

companies assessed in the RMI Report 2020, the LAC companies show quite different levels

of performance across the six different thematic areas and the scores are generally low,

reflecting gaps between company performances and society expectations as articulated by

the RMI framework. It is encouraging to see three companies rank among the 10 strongest

performing companies in at least one thematic area, but the high level of inconsistency

between thematic area performances within a given company highlights the need for a more

systematic and comprehensive integration of EESG issues into their business practices.

Table 1. Absolute and relative performances of LAC companies in the RMI Report 2020

The RMI Report 2020 results also shed light on how LAC companies are managing issues of

particular importance to mining workers, mining-affected communities and the wider

populations in producing countries. The examples summarised below show some of the

main gaps in LAC company efforts to address key public interest issues in the region.

Human rights defenders

Latin America and the Caribbean is the deadliest region in the world for human rights

defenders, with Colombia, Brazil, Guatemala and Mexico all ranking among the six countries

with the highest numbers of documented killings of land and environmental activists in

2018.10 Some 50% of the 164 documented killings that year took place in the LAC region

and globally mining accounted for more than a quarter of these 164 killings.11 The human

rights defenders killed in the region have been defending the land, the rights of indigenous

RMI Report 2020 │ Latin America and the Caribbean 9

peoples and/or the environment, especially against huge construction projects and extractive

industries.12

In the light of these strong sectoral and regional implications in the deaths of human rights

defenders, LAC mining companies have a clear responsibility and interest in showing

leadership on protecting the rights of these defenders. The results unfortunately show that

this is not happening: none of the LAC companies assessed have made a formal

commitment to protect the rights of human rights defenders. To date, only one company

(Newmont) among all the 38 companies assessed in the RMI Report 2020 has made such a

commitment.13

Indigenous Peoples

Where mining projects are situated in indigenous territories or other areas inhabited by

Indigenous Peoples, they are often met with opposition due to clashes over land rights,

environmental impacts and social and cultural disruption. Indigenous Peoples’ protests, often

fatal in the case of indigenous human rights defenders, have in some cases resulted in

successful legal cases to halt mining operations.14 These conflicts can be expected to

increase in some parts of the region, as mineral reserves coincide with indigenous territories.

In order to build trust and reduce the risk of conflict, LAC mining companies need to

demonstrate their respect for the rights, needs and interests of Indigenous Peoples

potentially affected by their operations.

The results show that the average score of these six companies is only 27% on designing

and implementing, through inclusive participation, strategies and plans to respect the rights,

interests and needs of Indigenous Peoples; with only one company reaching 50% (Vale).

The LAC companies show even less evidence of tracking, reviewing and acting to improve

their performance on this issue, with an average score of only 11%.

Regarding the right of Indigenous Peoples to Free, Prior and Informed Consent (FPIC),

internationally recognised by the UN Declaration on the Rights of Indigenous Peoples and in

the ILO Convention 169 ratified by 15 LAC countries, five of the six companies show no

evidence of having committed to respect this fundamental right. One company (Vale) states

that it works to ensure free, prior and informed consultation which is clearly not the intent of

the internationally accepted guidance, although a common downwards revision made by

numerous governments and companies. This leads to an average score of only 9% on this

very basic commitment indicator.

Water quality impacts

Access to clean water and respect of shared water needs are of utmost importance in the

LAC region, as a third of the region's population does not have sustained access to drinking

water.15 Water pollution is a common source of conflict between mining companies and

communities in the region, in some cases leading to fatal clashes and suspensions of

operations.

In spite of this, LAC mining companies are largely failing to demonstrate responsible

behaviour. The six LAC companies assessed in the RMI Report 2020 score an average of

10 RMI Report 2020 │ Latin America and the Caribbean

only 7% on demonstrating that they are tracking, reviewing and acting to improve their

performance on reducing adverse impacts on water quality. And mine-site-level action on

water quality is even poorer, with an average score of 2% among LAC companies on

regularly reporting meaningful data on ambient water quality and discussing with affected

communities how they are managing water quality.

Worker and community grievances

Mining worker grievances, on issues such as wage levels and working conditions, have led

to prolonged strikes at a number of operations in the LAC region, while community protests,

often over environmental impacts, have led to fatalities and suspensions of operations.16 It is

in the interests of all involved that such grievances are identified and addressed before

escalating into conflict.

Operational-level grievance mechanisms, if effective, provide the means to do this yet the

LAC companies assessed in the RMI Report 2020 show little evidence of having such

grievance mechanisms in place. Some 43% (21 sites) of their assessed mine sites show no

evidence of having operational grievance mechanisms for workers, and 55% (27 sites) sites

show no evidence of the equivalent mechanisms to address community grievances.

Where grievance mechanisms are available, few of the LAC companies can demonstrate

they are tracking, reviewing and acting to improve the effectiveness of the mechanisms. The

companies score an average of only 9% on demonstrating such actions for their worker

grievance mechanisms (with five companies scoring zero), and only 13% on the equivalent

actions for their community grievance mechanisms (with two companies scoring zero).

Leading Practice

Public disclosure of mine-site data on ambient water quality

→ Antofagasta's Los Pelambres mine in Chile provides online data for seven surface

water and three groundwater monitoring points around the mine site, for levels of

copper, molybdenum, coliforms, faecal coliforms, and sulphate in surface and

groundwater (and iron levels in surface water) over a ten-year period.

RMI Report 2020 │ Latin America and the Caribbean 11

Rehabilitation and closure planning

According to the OECD, “Clean-up of historical mining damage remains limited in LAC due

to a lack of legal frameworks making companies liable to do this. Abandoned mines

represent a significant ongoing risk to soil and water contamination in Latin America.”17 For

example, while Chile has made progress in identifying abandoned or inactive mine sites,

there are no decontamination plans in place for the estimated 650 abandoned mine sites in

the country.18

While the problem of continued pollution from abandoned mine sites is a global one it is

particularly acute in the LAC region given the long history of mining in the region and the

large number of closed or abandoned mine sites. And despite national legislation on closure

planning and rehabilitation in countries such as Chile, Peru, Brazil and Argentina, the issue

of rehabilitating already abandoned sites remains a priority.19

With progressive rehabilitation (implemented concurrently to the operations, throughout the

life of the mine) gradually becoming the norm around the world, it is surprising to see the

LAC assessed companies score only 20% on tracking, reviewing and acting to improve their

performance on progressive mine rehabilitation; three companies show no evidence of

implementing any progressive rehabilitation at all.

An effective mine closure planning process involves open communication with affected

communities and involvement of these communities in the setting of closure goals and the

development of action plans, in order to maximise opportunities to create a positive legacy

for future generations.

LAC mining companies assessed in the RMI Report 2020 show variable levels of

performance on the socio-economic aspects of closure and post-closure management. They

score an average of 34% on developing just transition plans for affected communities, to

seek to ensure continued viability of their livelihoods, with two companies scoring above

50% (Antofagasta achieves a full score on this indicator). However, on developing just

transition plans for their workers, the average score is only 7% with four companies scoring

zero. Finally, none of the six companies could demonstrate having made financial surety

Leading Practice

Public disclosure of the use of worker grievance mechanisms

→ CODELCO discloses mine-site-disaggregated data on the grievances received

from workers, on a quarterly basis via its online Ethics Point Portal. The same

platform is used to report complaints of unethical or illegal activity. The types of

complaints registered and disclosed relate to, for example, unsafe working

conditions, corruption and conflict of interest, workplace harassment and

discrimination, violence and sexual harassment. For each mine site, the company

discloses the number of each type of complaint received and the outcomes of the

investigations.

12 RMI Report 2020 │ Latin America and the Caribbean

arrangements to ensure coverage of short- and longer-term socio-economic aspects of

closure and post-closure (in fact this also applies to all the 38 companies in RMI Report

2020).

Good models point to ways forward for LAC mining companies

While the results of the LAC mine sites and LAC companies in the RMI Report 2020 are

generally weak, strong performances are seen on certain issues on the part of individual

mine sites or companies. The challenge and opportunity for LAC companies is to adopt more

widely the good practices seen in the region or beyond and to apply these practices more

consistently across their operations.

At the same time, policy initiatives by some LAC governments are driving more responsible

and transparent practices by mining companies and providing valuable models for other

countries to follow.

The evidence base provided by the LAC mine site results reveals a high potential for

continuous improvement on responsible mining within the region, based on learning and

replication of existing practices. While the best scoring mine-site in the LAC region achieves

only 50% in the RMI Report 2020 mine-site-level assessment, the collective performance of

the 49 LAC mine sites shows that it is possible to provide basic transparency and

demonstrate local stakeholder engagement at the mine site level. Indeed, if one mine site in

the mine-site assessment were to attain all the highest scores seen (among the 49 sites in

Latin America) for every indicator, it would reach approximately 63% of the maximum

achievable score. This collective best score goes up to 80% if performances of the global set

of 180 assessed mine sites are considered, showing the great opportunity for LAC

companies to systematically apply existing good practices being demonstrated by their

peers.

As an initial first step, all LAC companies can ensure they have put in place formal

commitments on key EESG issues such as respect for human rights (and the rights of

human rights defenders), the provision of safe and healthy working conditions, and the

systematic management of their environmental impacts across the lifecycle of their

operations. Beyond these commitments, LAC companies can show leadership on some of

the most pressing issues facing the region’s mining areas including human rights abuses,

tailings-related risks and adverse impacts on water quality and water availability. Systematic

action on these issues would go some way towards meeting society expectations of mining

companies.

Three areas where LAC companies and governments are already showing the way forward

include: (1) public-private partnerships for socio-economic development in mining regions;

(2) skills development for local communities and local mining workforces; and (3) actions to

address gender equity issues related to mining. A few examples of innovative initiatives in

these areas are summarised below.

RMI Report 2020 │ Latin America and the Caribbean 13

Socio-economic development planning

Antofagasta has a well-established system for working in partnership with regional

governments in Chile on socio-economic development planning. For example, Minera Los

Pelambres, a subsidiary of Antofagasta, has established a participatory programme for

sustainable development in Choapa Province, Chile. Known as 'Somos Choapa', the

initiative brings together local municipal authorities, community members and the company

to collectively identify and plan local-level initiatives. Each project developed by Somos

Choapa involves collaboration between the private and public sectors for its implementation

and the initiatives funded range from, for example, improvements in irrigation and drinking

water networks to cultural heritage and urban infrastructure projects.

Mexico has established a national fund to ensure economic benefits from mining are shared

with the mining-affected areas and to foster public-private collaboration on development

initiatives. The ‘Fund for Sustainable Regional Development of States and Mining

Municipalities’ is sustained through three specific fees on mining companies operating in the

country and 80% of the funds collected go towards financing social development projects in

the regions surrounding the mines. Of this amount, 37.5 percent is assigned to the states

where the mining takes place and 62.5 percent goes to the mining municipalities.

Development committees established to manage the dispensation of the funds include

representatives of the state, the municipalities where mines are located, the mining

companies, and indigenous or agrarian communities where mines are operating. The funds

can be allocated for social, environmental or urban projects such as the construction of

schools, the installation of roads, the provision of transportation services or the installation of

solid waste management systems.20

Skills development for local communities and local workforce

Industrias Peñoles shows relatively strong evidence of supporting education in areas around

its operations, including on some STEM (Science, Technology, Engineering and Maths)

subjects. For example, as well as partnering with a national civil society educational support

organisation in Mexico to raise teaching standards in schools near the company’s

operations, Industrias Peñoles sponsors an annual robotics competition in the Laguna region

with the aim of making science and technology more appealing to high school students.

Vale shows one of the stronger results on the issue of supporting technical and vocational

skills development among the wider population in collaboration with in-country institutions.

For example, Vale's Corporate University, Valer, runs a series of training programs aimed at

equipping local youth with mining-related qualifications. The Professional Qualification

Program trains young community members in operational and maintenance functions, while

the Professional Specialisation Program caters to those with a university background. This

program, designed in partnership with several Brazilian universities, offers postgraduate

scholarships with on-the-job training in the company's operations. Finally, Vale also runs a

programme of professional training for underrepresented groups in its workforce, including

women and people with disabilities.

14 RMI Report 2020 │ Latin America and the Caribbean

Addressing gender equity in mining

In 2012 Chile established a national standard on ‘Gender equality and reconciliation of

professional, family and personal life’ to drive more gender-aware practices by companies.

In line with this norm, CODELCO has a corporate system designed to address the health

and safety needs of women workers (including gender-appropriate PPE and rooms for

expressing and storing breast milk), as well as guidelines on ‘Maternity Protection,

Prevention of Sexual and Moral Harassment and Intrafamily Violence’. The guidelines set

out measures for CODELCO’s operations to prevent gender-based violence, harassment

and discrimination, promote women workers’ careers, enable safe working conditions for

women and promote healthy family life. The guidelines also address family violence,

including the prevention and detection of domestic violence and procedures for referral to

appropriate public institutions. Gender awareness workshops, dissemination of the

guidelines and education training by external parties are organised to keep the workers

informed of the guidelines.

The Colombian Ministry of Mines and Energy has developed a sector-wide gender equity

policy, which covers important issues such as the prevention of gender-based violence in

mining areas, the improvement of employment opportunities for women mining workers and

the inclusion of female as well as male community members in consultation processes

related to mining projects. The policy, which is intended to be rolled out this year, forms part

of Colombia’s overarching National Gender Action Plan.

Conclusion

Mining is an important economic sector for the Latin American and Caribbean region and a

key contributor to the exports of several countries. However, as elsewhere in the world,

mining activity in the region is associated with severe adverse impacts, including high-profile

incidents such as tailings dam failures, mine-site accidents, clashes with Indigenous Peoples

and local communities over natural resources, and killings of human rights defenders. While

the number of ongoing state processes to implement the UNGPs is promising in the region,

corporate accountability and continuous improvement must be promoted to make

responsible mining a reality.

The results of the RMI Report 2020 reveal important gaps in the performance of mining

companies operating in the region. On the whole, their corporate-level commitments on

economic, environmental, social and governance (EESG) issues are not being matched by

systematic action on these issues. In particular, there is a generalised lack of evidence of

mine-site level actions to disclose public interest data and engage with local stakeholders on

issues of critical importance to their lives and livelihoods such as local employment, air and

water quality and emergency planning.

At the same time, some mining companies – including those headquartered in the region –

are demonstrating leading practices on a range of issues. The role of producing country

governments is crucial in driving responsible mining and some LAC governments are putting

in place innovative policy instruments and initiatives.

RMI Report 2020 │ Latin America and the Caribbean 15

LAC companies have a strong opportunity and responsibility to show leadership on

responsible mining, especially on issues of regional importance such as respect for the

rights of Indigenous Peoples and human rights defenders, the safety of tailings storage

facilities, and planning for positive post-closure legacies. A valuable starting point for

company action would be for them to apply their corporate norms consistently across their

operations and to transparently share all public-interest information as standard practice.

The mining industry is perhaps evolving faster than it ever did. Corporate cultures are

changing and the Latin American and Caribbean region has a key role to play in preventing

negative impacts and demonstrating that mining can benefit the economies, improve the lives

of peoples and respect the environments of producing countries.

16 RMI Report 2020 │ Latin America and the Caribbean

ANNEX 1

Details of the 49 mine sites in Latin America and the Caribbean (LAC) that are assessed in

the mine-site-level assessment of the RMI Report 2020

Country Mine Site Company Argentina Alumbrera Glencore

Bolivia Porco Glencore

Brazil Andrade ArcelorMittal

Brazil Barro Alto Anglo American

Brazil Cuiabá Complex AngloGold Ashanti

Brazil Serra Sul Vale

Chile Antucoya Antofagasta

Chile Carmen de Andacollo Teck

Chile Centinela Antofagasta

Chile Cerro Colorado BHP

Chile Chuquicamata CODELCO

Chile El Abra Freeport-McMoRan/CODELCO

Chile El Teniente CODELCO

Chile Escondida BHP/Rio Tinto

Chile Gabriela Mistral CODELCO

Chile Los Bronces Anglo American

Chile Los Pelambres Antofagasta

Chile Quebrada Blanca Teck

Chile Radomiro Tomic CODELCO

Chile Salvador CODELCO

Chile Spence BHP

Chile Zaldívar Antofagasta/Barrick Gold Corp

Colombia Cerrejón Anglo American/BHP/Glencore

Colombia La Jagua Glencore

Dominican Republic Pueblo Viejo Barrick Gold Corp

Guyana Kurubuka-22 RUSAL

Jamaica Windalco RUSAL

Mexico Bismark Industrias Peñoles

Mexico Cananea Grupo México

Mexico La Caridad Grupo México

Mexico Las Truchas ArcelorMittal

Mexico Madero Industrias Peñoles

Mexico Milpillas Industrias Peñoles

Mexico Sabinas Industrias Peñoles

Mexico Santa Bárbara Grupo México

Mexico Velardeña Industrias Peñoles

Panama Cobre Panama First Quantum Minerals

Peru Antamina Glencore/Teck

Peru Cerro Corona Gold Fields

Peru Cerro Verde Freeport-McMoRan/Buenaventura

Peru Cuajone Grupo México

Peru Lagunas Norte Barrick Gold Corp

Peru Las Bambas MMG

Peru Orcopampa Buenaventura

Peru Tambomayo Buenaventura

Peru Toquepala Grupo México

Peru Uchucchacua Buenaventura

Peru Yanacocha Newmont/Buenaventura

Suriname Merian Newmont

RMI Report 2020 │ Latin America and the Caribbean 17

ANNEX 2

List of all the mine sites in LAC operated by companies assessed in the RMI Report 2020

Country Mine Site Company Argentina Aguilar Glencore

Argentina Alumbrera Glencore

Argentina Cerro Vanguardia AngloGold Ashanti

Argentina Veladero Barrick Gold Corp

Bolivia Bolivar Glencore

Bolivia Caballo Blanco Glencore

Bolivia Porco Glencore

Brazil Andrade ArcelorMittal

Brazil Azul Vale

Brazil Barro Alto Anglo American

Brazil Codemin Anglo American

Brazil Córrego do Sítio AngloGold Ashanti

Brazil Corumbá Vale

Brazil Cuiabá Complex AngloGold Ashanti

Brazil Mariana Vale

Brazil Minas Centrais Vale

Brazil Minas Itabirito Vale

Brazil Minas-Rio Anglo American

Brazil Morro da Mina Vale

Brazil Onça Puma Vale

Brazil Paraopeba Vale

Brazil Porto Trombetas Vale

Brazil Salobo Vale

Brazil Serra Azul ArcelorMittal

Brazil Serra Grande AngloGold Ashanti

Brazil Serra Leste Vale

Brazil Serra Norte Vale

Brazil Serra Sul Vale

Brazil Sossego Vale

Brazil Urucum Vale

Brazil Vargem Grande Vale

Chile Andina CODELCO

Chile Antucoya Antofagasta

Chile Carmen de Andacollo Teck

Chile Centinela Antofagasta

Chile Cerro Colorado BHP

Chile Chuquicamata CODELCO

Chile Collahuasi Anglo American/Glencore

Chile El Abra Freeport-McMoRan/CODELCO

Chile El Soldado Anglo American

Chile El Teniente CODELCO

Chile Escondida BHP/Rio Tinto

Chile Gabriela Mistral CODELCO

Chile Lomas Bayas Glencore

Chile Los Bronces Anglo American

Chile Los Pelambres Antofagasta

Chile Ministro Hales CODELCO

Chile Punitaqui Glencore

Chile Quebrada Blanca Teck

Chile Radomiro Tomic CODELCO

Chile Salvador CODELCO

Chile Spence BHP

Chile Zaldívar Antofagasta/Barrick Gold Corp

Colombia Calenturitas Glencore

Colombia Cerrejón Anglo American/BHP/Glencore

Colombia La Jagua Glencore

18 RMI Report 2020 │ Latin America and the Caribbean

Country Mine Site Company Dominican Republic Pueblo Viejo Barrick Gold Corp

Guyana Kurubuka-22 RUSAL

Guyana Kwakwani RUSAL

Jamaica Windalco RUSAL

Mexico Bismark Industrias Peñoles

Mexico Cananea Grupo México

Mexico Charcas Grupo México

Mexico Ciénega Industrias Peñoles

Mexico Fresnillo Industrias Peñoles

Mexico Herradura Industrias Peñoles

Mexico La Caridad Grupo México

Mexico Las Truchas ArcelorMittal

Mexico Madero Industrias Peñoles

Mexico Milpillas Industrias Peñoles

Mexico Noche Buena Industrias Peñoles

Mexico Nueva Rosita Grupo México

Mexico Peña Colorada ArcelorMittal

Mexico Sabinas Industrias Peñoles

Mexico San Julián Industrias Peñoles

Mexico San Martín Grupo México

Mexico Santa Bárbara Grupo México

Mexico Santa Eulalia Grupo México

Mexico Saucito Industrias Peñoles

Mexico Taxco Grupo México

Mexico Tizapa Industrias Peñoles

Mexico Velardeña Industrias Peñoles

Mexico Volcan Mines ArcelorMittal

Panama Cobre Panama First Quantum Minerals

Peru Antamina Glencore/Teck

Peru Antapaccay Glencore

Peru Cerro Corona Gold Fields

Peru Cerro Verde Freeport-McMoRan/Buenaventura

Peru Coimolache Grupo México/Buenaventura

Peru Colquijirca (Marcapunta) Buenaventura

Peru Colquijirca (Tajo Norte) Buenaventura

Peru Cuajone Grupo México

Peru Julcani Buenaventura

Peru La Zanja Buenaventura

Peru Lagunas Norte Barrick Gold Corp

Peru Las Bambas MMG

Peru Mallay Buenaventura

Peru Orcopampa Buenaventura

Peru Tambomayo Buenaventura

Peru Toquepala Grupo México

Peru Uchucchacua Buenaventura

Peru Yanacocha Newmont/Buenaventura

Peru Yauliyacu Glencore

Suriname Merian Newmont

RMI Report 2020 │ Latin America and the Caribbean 19

1 Bastida, A. E. (2018). Latin America’s Policy Priorities on Mining and Sustainable Development, and Opportunities for EU Cooperation. European Policy Brief, Strategic Dialogue on Sustainable Raw Materials for Europe (STRADE). http://stradeproject.eu/fileadmin/user_upload/pdf/STRADE_PB_LATAM_policy.pdf; Ericsson, M., Löf, O.(2019). Mining’s contribution to national economies between 1996 and 2016. Miner Econ (32): 223–250. https://doi.org/10.1007/s13563-019-00191-6. 2 ProInversión, Peru Ministry of Foreign Affairs and EY (2020). Peru’s Mining and Metals Investment Guide 2019/2020. https://cdn.www.gob.pe/uploads/document/file/292934/EY_Perus_Mining_and_Metals_Business_and_Investment_Guide_2019-2020.pdf. Statista (2019). Mining sector participation in the Gross Domestic Product (GDP) in Chile from 2009 to 2018. https://www.statista.com/statistics/1056760/chile-mining-sector-contribution-gdp/. 3 OECD/UN (2018), Production Transformation Policy Review of Chile: Reaping the Benefits of New Frontiers. OECD Development Pathways, OECD Publishing, Paris. http://dx.doi.org/10.1787/9789264288379-en. Statista (2019). Peru: mining industry as share of exports 2010-2018. https://www.statista.com/statistics/1030692/peru-mining-sector-share-total-exports/. 4 Morgan, A. J. and Dobson, R. (2020) An analysis of water risk in the mining sector. Water Risk Filter Research Series Volume 1, WWF. https://wwf.panda.org/our_work/water/freshwater_news/?359211/Mining-companies-and-commodities-face-significant-water-risks-warns-WWF-report. Sustainalytics (2019). Water Risks in Extractives Industries. https://www.sustainalytics.com/esg-blog/extractive-industries-water-risk/. 5 Reuters (2017). Water scarcity tops list of world miners' worries. https://www.reuters.com/article/us-africa-mining-water/water-scarcity-tops-list-of-world-miners-worries-idUSKBN15M26S. 6 World Mine Tailings Failures. https://worldminetailingsfailures.org/. 7 See https://www.churchofengland.org/investor-mining-tailings-safety-initiative. 8 In addition, eight mine sites were exempt from this mine-site indicator as it does not apply to them (i.e. they have no tailings storage on site). 9 See for example Reuters (2011). Factbox: Recent mining disasters in Latam and elsewhere. https://www.reuters.com/article/us-mine-disasters-factbox/factbox-recent-mining-disasters-in-latam-and-elsewhere-idUSTRE70P5CT20110126; Mining[Dot]Com (2017). Water scarcity, pollution to take shine off Latin American mining sector. https://www.mining.com/water-scarcity-pollution-to-take-shine-off-latin-american-mining-sector/; Schwarz-Herion, O. and Omran, A. (2020). Mining Environmental Disasters in North and South America: The Current Practices and the Way Forward. In Omran, A. and Schwarz-Herion, O. (eds.) Sustaining our Environment for Better Future, Springer Singapore. 10 Global Witness (2019). Enemies of the State? How governments and business silence land and environmental defenders. https://www.globalwitness.org/en/campaigns/environmental-activists/enemies-state/. 11 Global Witness (2019), op cit. 12 Latin American Post (2018). Latin America: a deadly region for human rights defenders. https://latinamericanpost.com/23115-latin-america-a-deadly-region-for-human-rights-defenders. 13 See Newmont (2019). Guide to Respecting Human Rights. https://s24.q4cdn.com/382246808/files/doc_downloads/sustainability/respecting_human/Newmont_GuidetoRespectingHumanRights_February2019.pdf. 14 Vitor, L. (2014). Indigenous People and Resistance to Mining Projects. ReVista Harvard Review of Latin America. https://revista.drclas.harvard.edu/book/indigenous-people-and-resistance-mining-projects. 15 Sempris, E. (n.d.). Climate Change and Freshwater in Latin America and the Caribbean. United Nations Chronicle. https://www.un.org/en/chronicle/article/climate-change-and-freshwater-latin-america-and-caribbean.

20 RMI Report 2020 │ Latin America and the Caribbean

16 See for example Reuters (2019). Workers at Chile's Chuquicamata copper mine vote to continue strike. https://www.reuters.com/article/us-chile-codelco-intl-strike/workers-at-chiles-chuquicamata-copper-mine-vote-to-continue-strike-idUSKCN1TO00B; BBC (2015). Peru: Troops deployed after deaths in Tia Maria mine protests. https://www.bbc.com/news/world-latin-america-32677410. 17 OECD (2018). Biodiversity Conservation and Sustainable Use in Latin America. Evidence from Environmental Performance Reviews. http://www.oecd.org/publications/biodiversity-conservation-and-sustainable-use-in-latin-america-9789264309630-en.htm. 18 OECD (2017). Environmental Performance Reviews: Chile 2016. https://www.oecd-ilibrary.org/environment/oecd-environmental-performance-reviews-chile-2016_9789264252615-en. 19 Bastida, A. E. (2018), op cit. 20 Holland, D. L. (2018). “New Extractivism” in Mexico: Hope and Deception. Journal of Politics in Latin America, 10 (2): 123–138. https://journals.sagepub.com/doi/pdf/10.1177/1866802X1801000205.

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